The market-day supply is drawn as a vertical line at a particular level of production because
a. output can easily be adjusted
b. chronic excess supply is permanent
c. output can completely adjust to price changes
d. output can partially adjust to price changes
e. output cannot be changed during the market day
e. output cannot be changed during the market day
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Consideration of the minimum efficient scale of operation would suggest that, to minimize production costs, the market should be served by a large number of small firms when the LRAC curve slopes downward over the relevant range of output
Indicate whether the statement is true or false
Lionfish is an aquatic invasive species in the southeastern U.S. and the Caribbean. Current removal policies focus on harvesting the lionfish for human consumption
Assuming that lionfish is a substitute for snapper, what will likely happen to fishing efforts for lionfish if the price of snapper increases? A) Fishing efforts will increase. B) Fishing efforts will decrease. C) Fishing efforts will remain the same if supply is perfectly inelastic. D) A and C.
Refer to the above figure. The market equilibrium quantity is Q1. Point Q2 represents the optimal amount of production. This indicates that there is
A) a public good which should be produced. B) regressive taxation of the product. C) a positive externality. D) a negative externality.
A radio station is best described as
A) an end user in a transaction-based market. B) a platform in an audience-making market. C) an end user in a matchmaking market. D) a platform in a shared-input market.